Exploring the Impacts of Manufacturing Garments for Us Brands by Mass Scale Manufacturers due to the Current Economic Crisis and Covid-19

Apparel Industry in Sri Lanka faced a significant impact due to covid-19 and the economic crisis in Sri Lanka. The Sri Lankan economic crisis was very acute to the nation, according to BBC news statements, many experts blame President Rajapaksa’s poor economic management that led to the country’s downfall. Research has shown that due to covid-19 and the economic crisis in Sri Lanka have affected the revenue and capacity of the apparel industry. Moreover, there is a fair share of brands who are currently looking at risk mitigation strategies to move their production to regions who does not suffer with power cuts and have the ability to meet the promised delivery dates. This study determined the extent in which the apparel industry in Sri Lanka was affected by covid-19 and the economic crisis in Sri Lanka and the limitations the apparel industry had in overcoming the identified challenges. There are five main objectives that was set in place for this research, such as to identify how these factors have an influence on garment manufacturers and most importantly the study found a feasible strategy that the apparel industry could implement in order to overcome the effects brought upon the apparel industry. Data for the study was collected by conducting 12 in-depth interviews from employees who are working under MAS Intimates. The participants ranged from executive to General managers who covered majority of the departments at MAS Intimates. Analysis of the finding demonstrated that brands have already started to risk mitigate by diverting their orders to competitive countries such as China, Vietnam, Cambodia who have a well setup verticality set in place to be able to offer the brands a competitive lead time and most importantly a better pricing. The finding also brought to light that here is a fair share of skilled labor migrating for simply experience a better standard of living. The research findings indicate that covid-19 and the Sri Lankan economic crisis does have a significant impact on the apparel industry. On this basis, it is recommended that apparel industries such as MAS Intimates respond to the wants of the brands which is to mitigate the risk by producing out of countries that has a shorter lead time and a stable economy. Further research is required to identify additional strategies to strengthen the confidence of the Sri Lankan Apparel industry.